There has been no announcement by Brookfield Property, but BPO.PR.S commenced trading today and data from the TMX website indicates a conversion rate of 11%.
It will be recalled the FixedReset BPO.PR.R has reset at 4.155% and will reset 2021-9-30 at GOC5+348bp, while BPO.PR.S will pay three-month bills +348bp, reset quarterly. They will be interconvertible again at the next Exchange Date, 2021-9-30.
Both issues are followed by HIMIPref™ but both are relegated to the Scraps subindex due to credit concerns.
Vital statistics are:
| BPO.PR.R |
FixedReset |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-10-03
Maturity Price : 18.15
Evaluated at bid price : 18.15
Bid-YTW : 5.70 % |
| BPO.PR.S |
FloatingReset |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-10-03
Maturity Price : 17.25
Evaluated at bid price : 17.25
Bid-YTW : 5.85 % |
At the current bid prices, the implied average three-month bill rate until the next Exchange date is -0.50%, slightly below the average implied rate for junk issues of -0.35%.
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This entry was posted on Tuesday, October 4th, 2016 at 1:11 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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BPO.PR.S Commences Trading After 11% Conversion From BPO.PR.R
There has been no announcement by Brookfield Property, but BPO.PR.S commenced trading today and data from the TMX website indicates a conversion rate of 11%.
It will be recalled the FixedReset BPO.PR.R has reset at 4.155% and will reset 2021-9-30 at GOC5+348bp, while BPO.PR.S will pay three-month bills +348bp, reset quarterly. They will be interconvertible again at the next Exchange Date, 2021-9-30.
Both issues are followed by HIMIPref™ but both are relegated to the Scraps subindex due to credit concerns.
Vital statistics are:
Maturity Type : Limit Maturity
Maturity Date : 2046-10-03
Maturity Price : 18.15
Evaluated at bid price : 18.15
Bid-YTW : 5.70 %
Maturity Type : Limit Maturity
Maturity Date : 2046-10-03
Maturity Price : 17.25
Evaluated at bid price : 17.25
Bid-YTW : 5.85 %
At the current bid prices, the implied average three-month bill rate until the next Exchange date is -0.50%, slightly below the average implied rate for junk issues of -0.35%.
Click for Big
This entry was posted on Tuesday, October 4th, 2016 at 1:11 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.